📈 Are We in a Bear Market?

What are Institutions Doing?

Yesterday we saw the indexes sell off, although we saw pretty significant buying in some names.

Let’s look at what institutions did yesterday. You can tell what they are doing by looking at the last 10 minutes of the market.

You can see exactly where their buying kicked in and what they were buying. They bought XLK, SOXX, and IGV.

Does that sound like a bear market to you? Institutions are increasing their exposure to tech, semiconductors, and cloud names. Doesn’t sound like it to me.

What Kind of Market are We In?

We are starting to see decoupling of stocks from their indexes. In other words, we are entering a stock-pickers market. No longer will you be able to just buy an index and make money in a certain sector. Instead, institutions are focusing on individual names.

An example of this decoupling can be found when looking at SNOW compares to its index, CLOU.

SNOW ripped yesterday, closing at the high of the day.

While CLOU was green, it did not have nearly the move that SNOW did.

So, going forward you are going to have to spot strength on specific stocks within indexes and go from there.

I share more about the current market we are in and how I am trading it here: